Union leader Gill Hale today launched an attack on Tony Blair over using private cash to improve public services.

Union leader Gill Hale today launched an attack on Tony Blair over using private cash to improve public services.

Ms Hale, the regional secretary of the UK's biggest union Unison, attacked the Prime Minister over his pledge to press ahead with plans to extend the Government's private finance initiative.

His comments brought a stinging rebuke from Ms Hale who believes there must be an independent review of how to fund public service improvements.

"It is an extraordinary claim to link the future of public service reform with the private finance initiative as if there is no alternative way of improving our public services.

"This is nonsense. The Government's mistake of absolutely fundamental historic importance has been to prevent the public sector from using other methods of procurement, leaving PFI as virtually the only option.

"PFI is not building world- class public services. In fact there is overwhelming evidence to the contrary," said Ms Hale.

She pointed to new research revealed in the British Medical Journal that suggested using public-private partnerships to build hospitals was poor value for money and resulted in falling bed numbers and service cuts.

She added: "Our own experience with both University Hospital in Durham and Cumberland Infirmary bears this out.

"The Government should ask itself why it continues to support the use of PFI in the face of mounting criticism from many quarters.

"It should carry out the independent review of PFI called for by the Labour Party conference and establish once and for all whether it is delivering value for taxpayers' money."

Ms Hale also criticised Mr Blair over his support for foundation hospitals. "Foundation hospitals will be like a Trojan horse, bringing private companies into the heart of the NHS. They will create an internal market and will lead to a two-tier health service."